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Form 8-K PITNEY BOWES INC /DE/ For: Jul 28

July 28, 2022 7:01 AM EDT

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________________
 
FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934

July 28, 2022
Date of Report (Date of earliest event reported)

Pitney Bowes Inc.
Ticker symbol: PBI
(Exact name of registrant as specified in its charter)

Delaware
001-03579
06-0495050
(State or other jurisdiction of
incorporation or organization)
(Commission file number)
(I.R.S. Employer Identification No.)
 
3001 Summer Street
Stamford, Connecticut 06926
(Address of principal executive offices)
 
(203) 356-5000
(Registrant’s telephone number, including area code)
 
Not Applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:

Title of each class
  Trading Symbol(s)
  Name of Each Exchange on Which Registered
Common Stock, $1 par value per share
  PBI
  New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Securities Act. ☐




ITEM 2.02.     RESULTS OF OPERATIONS AND FINANCIAL CONDITION
 
The following information is furnished pursuant to Item 2.02 Disclosure of "Results of Operations and Financial Condition."

On July 28, 2022, the Registrant issued a press release setting forth its financial results, including consolidated statements of income, supplemental information, and a reconciliation of reported results to adjusted results for the three and six months ended June 30, 2022 and 2021, and consolidated balance sheets at June 30, 2022 and December 31, 2021. A copy of the press release is attached hereto as Exhibit 99.1 and hereby incorporated by reference.


ITEM 9.01.     FINANCIAL STATEMENTS AND EXHIBITS
 
 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 
Pitney Bowes Inc.
 
 
July 28, 2022
 
 
 
 
 
 
 
 
/s/ Joseph R. Catapano
 
Joseph R. Catapano
 
Vice President, Chief Accounting Officer  
(Principal Accounting Officer)


Exhibit 99.1

Pitney Bowes Announces Second Quarter 2022 Financial Results

STAMFORD, Conn,--(BUSINESS WIRE)--July 28, 2022--Pitney Bowes (NYSE: PBI), a global shipping and mailing company that provides technology, logistics, and financial services, today announced its financial results for the second quarter 2022.

“While there were some very positive aspects to our second quarter, our financial results were below our expectations,” said Marc B. Lautenbach, President and CEO, Pitney Bowes. “In Global Ecommerce, we were not able to overcome macroeconomic headwinds, including the strength of the US dollar and the COVID shutdown in China, which caused a reduction in some of our package volumes. However, we are encouraged by a sustained improvement in our domestic parcel network service levels, which is driving domestic parcel revenue growth and a robust pipeline of new clients. Our Presort and SendTech businesses in the aggregate posted revenue growth on a constant currency basis. Finally, proceeds from the sale of Borderfree enhances financial flexibility as we continue to execute against our long-term plan.”

Second Quarter Financial Highlights

  • Revenue in the quarter was $871 million, a decrease of 3 percent on a reported basis and 2 percent on a constant currency basis from the comparable quarter in 2021
  • GAAP EPS and Adjusted EPS were $0.02 in the quarter versus $0.11 in second quarter 2021
  • GAAP cash from operations in the quarter was $35 million
  • Free cash flow was $6 million versus $87 million in second quarter 2021; decrease driven largely by lower customer deposits and net income

Second Quarter Business Highlights

  • Global Ecommerce posted domestic parcel revenue growth of 6 percent
  • Domestic parcel gross margins expanded despite lower volumes
  • Presort revenue grew 3 percent on a year-over-year basis
  • SendTech revenue grew on a constant currency basis with growth in shipping and equipment sales offset by lower financing and services revenues
  • Announced divestiture of Borderfree for approximately $100 million with proceeds received in early July

Earnings per share results are summarized in the table below

 

Second Quarter

 

2022

2021

GAAP EPS

$0.02

$0.11

Discontinued Operations

-

$0.01

GAAP EPS from Continuing Operations

$0.02

$0.12

Restructuring Charges

$0.02

$0.02

Gain on Sale of Assets/Business

-

($0.03)

Tax Benefit from Sale of Business

($0.03)

-

Transaction Costs

$0.02

-

Adjusted EPS

$0.02

$0.11






 

* The sum of the earnings per share may not equal the totals due to rounding.

Business Segment Reporting

Global Ecommerce

Global Ecommerce provides business to consumer logistics services for domestic and cross border delivery, returns and fulfillment.

 

Second Quarter

($ millions)

2022

2021

% Change

Reported

% Change

Ex Currency

Revenue

$394

$418

(6%)

(5%)

EBITDA

($7)

$8

>(100%)

 

EBIT

($29)

($11)

>(100%)

 

Overall segment revenue declined as domestic parcel revenue growth was offset by lower cross-border volumes amid a more challenging macroeconomic environment, especially a stronger US Dollar.

Domestic parcel volumes were 39 million, a 5 million decrease compared to prior year, driven by weakness in volumes originating in China and processed by our domestic network. Parcel volumes from North American clients increased mid-single digits.

Improved domestic parcel gross margins were more than offset by lower cross-border results and higher operating expenses, resulting in lower profitability.


Presort Services

Presort Services provides sortation services to qualify large volumes of First Class Mail, Marketing Mail, Marketing Mail Flats and Bound Printed Matter for postal workshare discounts.

 

Second Quarter

($ millions)

2022

2021

% Change

Reported

% Change

Ex Currency

Revenue

$139

$135

3%

3%

EBITDA

$20

$23

(13%)

 

EBIT

$13

$16

(20%)

 

Revenue growth was driven by better revenue per piece and new client volume. Total volumes were impacted by a softening economy and declined in the quarter. EBITDA and EBIT margins declined in the quarter due to inflationary pressures on labor and transportation costs.

SendTech Solutions

Sending Technology Solutions offers physical and digital mailing and shipping technology solutions, financing, services, supplies and other applications for small and medium businesses, retail, enterprise, and government clients around the world to help simplify and save on the sending, tracking and receiving of letters, parcels and flats.

 

Second Quarter

($ millions)

2022

2021

% Change

Reported

% Change

Ex Currency

Revenue

$339

$346

(2%)

0%

EBITDA

$103

$115

(10%)

 

EBIT

$96

$107

(11%)

 

Higher equipment sales and shipping related revenues were offset by lower finance and service revenues. EBITDA and EBIT declines were driven primarily by a decrease in high margin finance and service revenues.

Revised 2022 Expectations

Based on uncertain macroeconomic conditions, first half results, and the sale of Borderfree, the Company expects full year revenue (constant currency) to range from a low-single digit percentage decline to a low single digit percentage increase.


The Company also expects full year EBIT to range from a high-single digit percentage decline to a mid-single digit percentage increase.

In addition, the Company expects to generate solid free cash flow for full year 2022 though at a lower level than prior year.

Conference Call and Webcast

Management of Pitney Bowes will discuss the Company’s results in a broadcast over the Internet today at 8:00 a.m. EDT. Instructions for listening to the earnings results via the Web are available on the Investor Relations page of the Company’s web site at www.pitneybowes.com.

About Pitney Bowes

Pitney Bowes (NYSE: PBI) is a global shipping and mailing company that provides technology, logistics, and financial services to more than 90 percent of the Fortune 500. Small business, retail, enterprise, and government clients around the world rely on Pitney Bowes to remove the complexity of sending mail and parcels. For additional information, visit: www.pitneybowes.com

Use of Non-GAAP Measures

The Company's financial results are reported in accordance with generally accepted accounting principles (GAAP); however, in its disclosures the Company uses certain non-GAAP measures, such as adjusted earnings before interest and taxes (EBIT), adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted earnings per share (EPS), revenue growth on a constant currency basis and free cash flow.

Adjusted EBIT, Adjusted EBITDA and Adjusted EPS exclude the impact of discontinued operations, restructuring charges, gains, losses and costs related to acquisitions and dispositions, asset and goodwill impairment charges, and other unusual or one-time items. Such items are often inconsistent in amount and frequency and as such, the Company believes that these non-GAAP measures provide investors greater insight into the underlying operating trends of the business.


In addition, revenue growth is presented on a constant currency basis to exclude the impact of changes in foreign currency exchange rates since the prior period under comparison. Constant currency is calculated by converting the current period non-U.S. dollar denominated revenue using the prior year’s exchange rate for the comparable quarter. We believe that excluding the impacts of currency exchange rates provides investors a better understanding of the underlying revenue performance.

Free cash flow adjusts cash from operations calculated in accordance with GAAP for discontinued operations, capital expenditures, restructuring payments, changes in customer deposits held at the Pitney Bowes Bank and other special items. The Company reports free cash flow to provide investors insight into the amount of cash that management could have available for other discretionary uses.

Segment EBIT is the primary measure of profitability and operational performance at the segment level and is determined by deducting from segment revenue the related costs and expenses attributable to the segment. Segment EBIT excludes interest, taxes, unallocated corporate expenses, restructuring charges, asset and goodwill impairment charges, and other items not allocated to a segment. The Company also reports segment EBITDA as an additional useful measure of segment profitability and operational performance.

Complete reconciliations of non-GAAP measures to comparable GAAP measures can be found in the attached financial schedules and at the Company's web site at www.pb.com/investorrelations

This document contains “forward-looking statements” about the Company’s expected or potential future business and financial performance. Forward-looking statements include, but are not limited to, statements about future revenue and earnings guidance and future events or conditions. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from those projected. In particular, we continue to navigate the impacts of the Covid-19 pandemic (Covid-19) as well as the risk of a global recession, and the effects that they may have on our, and our client’s business. Other factors which could cause future financial performance to differ materially from expectations, and which may also be exacerbated by Covid-19 or the risk of a global recession or a negative change in the economy, include, without limitation, declining physical mail volumes; changes in postal regulations or the operations and financial health of posts in the U.S. or other major markets or changes to the broader postal or shipping markets; the loss of, or significant changes to, United States Postal Service (USPS) commercial programs, or our contractual relationships with the USPS or USPS' performance under those contracts; our ability to continue to grow and manage volumes, gain additional economies of scale and improve profitability within our Global Ecommerce segment; changes in labor and transportation availability and costs; and other factors as more fully outlined in the Company's 2021 Form 10-K Annual Report and other reports filed with the Securities and Exchange Commission. Pitney Bowes assumes no obligation to update any forward-looking statements contained in this document as a result of new information, events or developments.


Note: Consolidated statements of income; revenue, EBIT and EBITDA by business segment; and reconciliations of GAAP to non-GAAP measures for the three and six months ended June 30, 2022 and 2021, and consolidated balance sheets at June 30, 2022 and December 31, 2021 are attached.

Disclosure Using Social Media

Pitney Bowes announces material information to its investors using SEC filings, press releases, public conference calls and webcasts. The Company already makes frequent use of its investor relations website to disseminate material information, as well as social media platforms, including Twitter, Facebook and LinkedIn. Investors, buy and sell-side analysts, media and influencers should note that the Company plans to continue to announce material financial information using the Pitney Bowes investor relations website, SEC filings, and press releases, public conference calls and webcasts. Pitney Bowes is notifying investors, media and others interested in the Company that in the future, the Company may choose to communicate material information through its social media channels, or it is possible that information it discloses through social media channels may be deemed to be material. Therefore, Pitney Bowes encourages investors, the media, and others interested in the Company to review the information posted on the Company’s investor relations site (https://www.investorrelations.pitneybowes.com/), Twitter (https://twitter.com/PBnews and https://twitter.com/PitneyBowes), Facebook (https://www.facebook.com/PitneyBowes/), and LinkedIn (https://www.linkedin.com/company/pitney-bowes/). The Company may communicate on social media platforms not listed here as well as create new accounts in the future. Any updates to the list of social media channels Pitney Bowes will use to announce material information will be posted on the Investor Relations page.


Pitney Bowes Inc.
Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)







 

Three months ended June 30,

 

Six months ended June 30,


 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenue:








Business services

$

551,478

 


$

567,022

 


$

1,148,862

 


$

1,137,476

 

Support services

 

107,625

 


 

115,156

 


 

217,977

 


 

233,853

 

Financing

 

67,298

 


 

73,453

 


 

139,327

 


 

151,265

 

Equipment sales

 

89,986

 


 

86,267

 


 

179,282

 


 

173,070

 

Supplies

 

38,245

 


 

38,655

 


 

79,306

 


 

80,879

 

Rentals

 

16,863

 


 

18,650

 


 

33,683

 


 

37,857

 

Total revenue

 

871,495

 


 

899,203

 


 

1,798,437

 


 

1,814,400

 

 








Costs and expenses:








Cost of business services

 

477,544

 


 

482,814

 


 

980,759

 


 

982,348

 

Cost of support services

 

37,711

 


 

37,679

 


 

74,845

 


 

74,396

 

Financing interest expense

 

12,533

 


 

11,773

 


 

24,135

 


 

23,659

 

Cost of equipment sales

 

63,815

 


 

61,561

 


 

127,586

 


 

123,401

 

Cost of supplies

 

11,028

 


 

10,467

 


 

22,545

 


 

21,678

 

Cost of rentals

 

7,473

 


 

6,013

 


 

12,782

 


 

12,460

 

Selling, general and administrative

 

226,638

 


 

236,190

 


 

469,423

 


 

474,292

 

Research and development

 

11,254

 


 

11,059

 


 

22,588

 


 

22,375

 

Restructuring charges

 

4,224

 


 

4,844

 


 

8,408

 


 

7,733

 

Interest expense, net

 

21,007

 


 

24,346

 


 

43,131

 


 

49,504

 

Other components of net pension and postretirement expense

 

958

 


 

312

 


 

1,802

 


 

662

 

Other (income) expense, net

 

-

 


 

(13,646

)


 

(11,901

)


 

37,748

 

Total costs and expenses

 

874,185

 


 

873,412

 


 

1,776,103

 


 

1,830,256

 

 








(Loss) income from continuing operations before taxes

 

(2,690

)


 

25,791

 


 

22,334

 


 

(15,856

)

(Benefit) provision for income taxes

 

(7,026

)


 

4,915

 


 

(2,823

)


 

(9,077

)

Income (loss) from continuing operations

 

4,336

 


 

20,876

 


 

25,157

 


 

(6,779

)

Loss from discontinued operations, net of tax

 

-

 


 

(1,020

)


 

-

 


 

(4,906

)

Net income (loss)

$

4,336

 


$

19,856

 


$

25,157

 


$

(11,685

)

 








Basic earnings (loss) per share:








Continuing operations

$

0.02

 


$

0.12

 


$

0.14

 


$

(0.04

)

Discontinued operations

 

-

 


 

(0.01

)


 

-

 


 

(0.03

)

Net income (loss)

$

0.02

 


$

0.11

 


$

0.14

 


$

(0.07

)

 








Diluted earnings (loss) per share:








Continuing operations

$

0.02

 


$

0.12

 


$

0.14

 


$

(0.04

)

Discontinued operations

 

-

 


 

(0.01

)


 

-

 


 

(0.03

)

Net income (loss)

$

0.02

 


$

0.11

 


$

0.14

 


$

(0.07

)

 








Weighted-average shares used in diluted earnings per share

 

176,969

 


 

178,979

 


 

177,673

 


 

173,367

 

(1)


The sum of the earnings per share amounts may not equal the totals due to rounding.

Pitney Bowes Inc.
Consolidated Balance Sheets
(Unaudited; in thousands)



 

Assets

June 30,
2022

December 31,
2021

Current assets:




Cash and cash equivalents

$

570,697

 


$

732,480

 

Short-term investments

 

11,519

 


 

14,440

 

Accounts and other receivables, net

 

268,722

 


 

334,630

 

Short-term finance receivables, net

 

557,571

 


 

560,680

 

Inventories

 

82,797

 


 

78,588

 

Current income taxes

 

15,875

 


 

13,894

 

Assets held for sale

 

108,677

 


 

36,394

 

Other current assets and prepayments

 

151,090

 


 

120,947

 

Total current assets

 

1,766,948

 


 

1,892,053

 

Property, plant and equipment, net

 

427,438

 


 

429,162

 

Rental property and equipment, net

 

30,889

 


 

34,774

 

Long-term finance receivables, net

 

592,928

 


 

587,427

 

Goodwill

 

1,060,452

 


 

1,135,103

 

Intangible assets, net

 

82,770

 


 

132,442

 

Operating lease assets

 

242,452

 


 

208,428

 

Noncurrent income taxes

 

62,849

 


 

68,398

 

Other assets

 

410,865

 


 

471,084

 

Total assets

$

4,677,591

 


$

4,958,871

 

 




Liabilities and stockholders' equity




Current liabilities:




Accounts payable and accrued liabilities

$

827,639

 


$

922,543

 

Customer deposits at Pitney Bowes Bank

 

616,150

 


 

632,062

 

Current operating lease liabilities

 

42,253

 


 

40,299

 

Current portion of long-term debt

 

24,752

 


 

24,739

 

Advance billings

 

96,573

 


 

99,280

 

Liabilities held for sale

 

18,700

 


 

-

 

Current income taxes

 

2,865

 


 

9,017

 

Total current liabilities

 

1,628,932

 


 

1,727,940

 

Long-term debt

 

2,194,767

 


 

2,299,099

 

Deferred taxes on income

 

268,416

 


 

286,445

 

Tax uncertainties and other income tax liabilities

 

31,643

 


 

31,935

 

Noncurrent operating lease liabilities

 

227,238

 


 

192,092

 

Other noncurrent liabilities

 

282,441

 


 

308,728

 

Total liabilities

 

4,633,437

 


 

4,846,239

 

 




Stockholders' equity:




Common stock

 

323,338

 


 

323,338

 

Additional paid-in-capital

 

-

 


 

2,485

 

Retained earnings

 

5,137,248

 


 

5,169,270

 

Accumulated other comprehensive loss

 

(850,053

)


 

(780,312

)

Treasury stock, at cost

 

(4,566,379

)


 

(4,602,149

)

Total stockholders' equity

 

44,154

 


 

112,632

 

Total liabilities and stockholders' equity

$

4,677,591

 


$

4,958,871

 


Pitney Bowes Inc.
Business Segment Revenue
(Unaudited; in thousands)











 











 

Three months ended June 30,

 

Six months ended June 30,


 

2022

 

 

2021

 

% Change

 

 

2022

 

 

2021

 

% Change












 
Global Ecommerce

$

393,770


$

418,429


(6

%)


$

812,297


$

831,515


(2

%)

Presort Services

 

138,934


 

134,619


3

%


 

299,478


 

277,745


8

%

Sending Technology Solutions

 

338,791


 

346,155


(2

%)


 

686,662


 

705,140


(3

%)

Total revenue - GAAP

 

871,495


 

899,203


(3

%)


 

1,798,437


 

1,814,400


(1

%)

Currency impact on revenue

 

10,775


 

-




 

14,767


 

-



Revenue, at constant currency

$

882,270


$

899,203


(2

%)


$

1,813,204


$

1,814,400


(0

%)


Pitney Bowes Inc.
Business Segment EBIT & EBITDA
(Unaudited; in thousands)










 

Three months ended June 30,

 

2022

 


 

2021

 


% change

EBIT (1) D&A EBITDA
EBIT (1) D&A EBITDA
EBIT EBITDA










 
Global Ecommerce

$

(28,825

)

$

21,480

$

(7,345

)


$

(10,831

)

$

19,060

$

8,229

 


>(100%) >(100%)
Presort Services

 

12,851

 

 

7,000

 

19,851

 


 

16,134

 

 

6,798

 

22,932

 


(20

%)

(13

%)

Sending Technology Solutions

 

95,565

 

 

7,908

 

103,473

 


 

107,121

 

 

7,537

 

114,658

 


(11

%)

(10

%)

Segment total

$

79,591

 

$

36,388

 

115,979

 


$

112,424

 

$

33,395

 

145,819

 


(29

%)

(20

%)











 
Reconciliation of Segment EBITDA to Net Income:









Segment depreciation and amortization

 

(36,388

)




 

(33,395

)




Unallocated corporate expenses

 

(40,761

)




 

(56,316

)




Restructuring charges

 

(4,224

)




 

(4,844

)




Gain on sale of assets

 

-

 




 

1,434

 




Gain on sale of business

 

-

 




 

10,201

 




Loss on debt redemption/refinancing

 

-

 




 

(989

)




Transaction costs

 

(3,756

)




 

-

 




Interest, net

 

(33,540

)




 

(36,119

)




Benefit (provision) for income taxes

 

7,026

 




 

(4,915

)




Income from continuing operations

 

4,336

 




 

20,876

 




Loss from discontinued operations, net of tax

 

-

 




 

(1,020

)




Net income

$

4,336

 




$

19,856

 














 

Six months ended June 30,


2022

 

2021

 

% change


EBIT (1)

D&A

EBITDA

 

EBIT (1)

D&A

EBITDA

 

EBIT

EBITDA











 
Global Ecommerce

$

(42,521

)

$

42,924

$

403

 


$

(37,207

)

$

37,236

$

29

 


(14

%)

>100%
Presort Services

 

32,483

 

 

13,419

 

45,902

 


 

35,185

 

 

14,297

 

49,482

 


(8

%)

(7

%)

Sending Technology Solutions

 

200,140

 

 

14,911

 

215,051

 


 

221,591

 

 

15,140

 

236,731

 


(10

%)

(9

%)

Segment Total

$

190,102

 

$

71,254

 

261,356

 


$

219,569

 

$

66,673

 

286,242

 


(13

%)

(9

%)











 
Reconciliation of Segment EBITDA to Net Income (Loss):









Segment depreciation and amortization

 

(71,254

)




 

(66,673

)




Unallocated corporate expenses

 

(98,595

)




 

(113,781

)




Restructuring charges

 

(8,408

)




 

(7,733

)




Gain on sale of assets

 

14,372

 




 

1,434

 




Gain on sale of business

 

2,522

 




 

10,201

 




Loss on debt redemption/refinancing

 

(4,993

)




 

(52,383

)




Transaction costs

 

(5,400

)




 

-

 




Interest, net

 

(67,266

)




 

(73,163

)




Benefit for income taxes

 

2,823

 




 

9,077

 




Income (loss) from continuing operations

 

25,157

 




 

(6,779

)




Loss from discontinued operations, net of tax

 

-

 




 

(4,906

)




Net income (loss)

$

25,157

 




$

(11,685

)




(1)

  Segment EBIT excludes interest, taxes, general corporate expenses, restructuring charges, and other items that are not allocated to a particular business segment. In 2022, we refined the methodology for allocating transportation costs between Global Ecommerce and Presort Services, resulting in an increase in Global Ecommerce EBIT and a corresponding decrease in Presort Services EBIT of $3 million and $7 million for the three and six months ended June 30, 2022, respectively.

Pitney Bowes Inc.
Reconciliation of Reported Consolidated Results to Adjusted Results
(Unaudited; in thousands, except per share amounts)








 


Three months ended June 30,

 

Six months ended June 30,



 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 









 
Reconciliation of reported net income (loss) to adjusted EBIT and EBITDA







Net income (loss)

$

4,336

 


$

19,856

 


$

25,157

 


$

(11,685

)

Loss from discontinued operations, net of tax

 

-

 


 

1,020

 


 

-

 


 

4,906

 

(Benefit) provision for income taxes

 

(7,026

)


 

4,915

 


 

(2,823

)


 

(9,077

)

(Loss) income from continuing operations before taxes

 

(2,690

)


 

25,791

 


 

22,334

 


 

(15,856

)

Restructuring charges

 

4,224

 


 

4,844

 


 

8,408

 


 

7,733

 

Gain on sale of assets

 

-

 


 

(1,434

)


 

(14,372

)


 

(1,434

)

Gain on sale of business

 

-

 


 

(10,201

)


 

(2,522

)


 

(10,201

)

Loss on debt redemption/refinancing

 

-

 


 

989

 


 

4,993

 


 

52,383

 

Transaction costs

 

3,756

 


 

-

 


 

5,400

 


 

-

 

Adjusted net income before tax

 

5,290

 


 

19,989

 


 

24,241

 


 

32,625

 

Interest, net

 

33,540

 


 

36,119

 


 

67,266

 


 

73,163

 

Adjusted EBIT

 

38,830

 


 

56,108

 


 

91,507

 


 

105,788

 

Depreciation and amortization

 

43,470

 


 

39,822

 


 

85,472

 


 

79,416

 

Adjusted EBITDA

$

82,300

 


$

95,930

 


$

176,979

 


$

185,204

 









 
Reconciliation of reported diluted earnings (loss) per share to adjusted diluted earnings per share







Diluted earnings (loss) per share

$

0.02

 


$

0.11

 


$

0.14

 


$

(0.07

)

Loss from discontinued operations, net of tax

 

-

 


 

0.01

 


 

-

 


 

0.03

 

Restructuring charges

 

0.02

 


 

0.02

 


 

0.03

 


 

0.03

 

Gain on sale of assets

 

-

 


 

(0.01

)


 

(0.06

)


 

(0.01

)

Gain on sale of business

 

-

 


 

(0.02

)


 

(0.02

)


 

(0.02

)

Loss on debt redemption/refinancing

 

-

 


 

-

 


 

0.02

 


 

0.22

 

Tax benefit on sale of business

 

(0.03

)




 

(0.03

)



Transaction costs

 

0.02

 


 

-

 


 

0.02

 


 

-

 

Adjusted diluted earnings per share (1)

$

0.02

 


$

0.11

 


$

0.10

 


$

0.19

 









 
(1) The sum of the earnings per share amounts may not equal the totals due to rounding.








 
Reconciliation of reported net cash from operating activities to free cash flow







Net cash from operating activities

$

35,132

 


$

78,806

 


$

45,694

 


$

144,729

 

Capital expenditures

 

(31,619

)


 

(40,375

)


 

(64,174

)


 

(83,703

)

Restructuring payments

 

4,970

 


 

4,870

 


 

8,255

 


 

8,825

 

Change in customer deposits at PB Bank

 

(2,953

)


 

43,427

 


 

(15,912

)


 

15,633

 

Transaction costs paid

 

-

 


 

-

 


 

2,132

 


 

-

 

Free cash flow

$

5,530

 


$

86,728

 


$

(24,005

)


$

85,484

 

 

Contacts

Editorial -
Bill Hughes
Chief Communications Officer
203.351.6785

Financial -
Ned Zachar, CFA
VP, Investor Relations
203.614.1092

Alex Brown
Senior Manager, Investor Relations
203.351.7639



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